Correlation Between Varex Imaging and Acadia Healthcare
Can any of the company-specific risk be diversified away by investing in both Varex Imaging and Acadia Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Varex Imaging and Acadia Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Acadia Healthcare, you can compare the effects of market volatilities on Varex Imaging and Acadia Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Varex Imaging with a short position of Acadia Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Acadia Healthcare.
Diversification Opportunities for Varex Imaging and Acadia Healthcare
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Varex and Acadia is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Acadia Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Healthcare and Varex Imaging is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Varex Imaging Corp are associated (or correlated) with Acadia Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Healthcare has no effect on the direction of Varex Imaging i.e., Varex Imaging and Acadia Healthcare go up and down completely randomly.
Pair Corralation between Varex Imaging and Acadia Healthcare
Given the investment horizon of 90 days Varex Imaging Corp is expected to generate 0.63 times more return on investment than Acadia Healthcare. However, Varex Imaging Corp is 1.6 times less risky than Acadia Healthcare. It trades about 0.38 of its potential returns per unit of risk. Acadia Healthcare is currently generating about -0.24 per unit of risk. If you would invest 1,315 in Varex Imaging Corp on August 28, 2024 and sell it today you would earn a total of 324.00 from holding Varex Imaging Corp or generate 24.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Acadia Healthcare
Performance |
| Timeline |
| Varex Imaging Corp |
| Acadia Healthcare |
Varex Imaging and Acadia Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Acadia Healthcare
The main advantage of trading using opposite Varex Imaging and Acadia Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging position performs unexpectedly, Acadia Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Acadia Healthcare will offset losses from the drop in Acadia Healthcare's long position.| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
| Acadia Healthcare vs. Encompass Health Corp | Acadia Healthcare vs. Pennant Group | Acadia Healthcare vs. Select Medical Holdings | Acadia Healthcare vs. Addus HomeCare |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance |